If you own a business, drive your car for a charitable cause, or need mileage deductions for medical or military moving expenses, staying on top of the latest Internal Revenue Service (IRS) mileage rates can help you avoid leaving money on the table. As fuel prices and economic conditions shift, the IRS adjusts these rates to reflect the cost of operating a vehicle. In 2025, the IRS standard mileage rate for business use has been officially set to 70 cents per mile, while charity use remains at 14 cents, and medical or military moving mileage is 21 cents per mile.
We’ll explain how these rates apply to your specific situation, outline the importance of keeping good records, and dive into best practices that ensure you get the most out of your mileage deductions—without risking penalties or audits.
In this article, you’ll learn:
- How the IRS sets mileage rates for business, charity, and medical/military moving.
- The new IRS standard mileage rate 2025 (70 cents for business) and how it compares to recent years.
- Essential recordkeeping tips to meet IRS requirements.
- The biggest mistakes people make when tracking and claiming mileage.
- Answers to the most commonly asked questions about claiming mileage expenses.
Whether you’re a seasoned business owner or just starting, you’ll walk away with a clearer insight into how these deductions work and how to optimize them. Let’s dive in.
Published: February 4, 2025
- Understanding IRS Mileage Rates for 2025
- Business Mileage: Maximizing Deductions
- Mileage for Charity Use
- Medical or Military Moving Mileage
- Recordkeeping: Essential for Mileage Deductions
- Common Mistakes and Pitfalls
- FAQs About the IRS Mileage Rate 2025
- What is the IRS mileage rate for 2025?
- When does the 2025 IRS mileage rate become effective?
- Can I switch between standard mileage and the actual expense method mid-year?
- Why is the charity rate lower than the business rate?
- How do I track mileage for multiple cars?
- Do I need a special app or will a paper log suffice?
- Can I deduct commuting miles from home to my office?
- Does the IRS offer any leniency if I forget to keep a mileage log?
- How does the Section 179 deduction relate to mileage deductions, and what about vehicles over 6,000 lbs?
- Conclusion
Understanding IRS Mileage Rates for 2025
Staying on top of mileage rates can yield surprisingly large tax savings if you use your vehicle frequently for business or other qualifying purposes. Here, we’ll outline how the IRS mileage rates have evolved, what factors influence them, and what to know now that 2025 IRS mileage rates have been announced.
What Are IRS Mileage Rates?
The IRS sets standard mileage rates to calculate deductible costs associated with using an automobile for specific purposes. Instead of tallying up actual costs of fuel, maintenance, and repairs, you can choose to use this standard rate to simplify your tax deduction. Typically, there are different rates for different categories:
- Business Use: Covers mileage driven for business-related activities, such as visiting clients, attending conferences, or traveling between job sites.
- Charitable Use: If you volunteer or use your vehicle in service of a qualified charitable organization, you might qualify for a smaller deduction rate (14 cents per mile, which rarely changes due to legislative factors).
- Medical or Military Moving: If you have doctor appointments or medical treatments that require travel, or if you’re an active-duty military member relocating, these expenses may be deductible at the medical/moving rate.
The standard mileage rate exists to make it easier for taxpayers to calculate deductions without meticulously adding every single vehicle-related expense. That being said, if you prefer to account for actual expenses—like gas, oil, depreciation, or lease payments—you can do so. But remember, you cannot claim both the standard mileage rate and actual expenses in the same tax year for the same vehicle.
| Period | Business use (cents/mile) | Charity use (cents/mile) | Medical or military moving (cents/mile) |
|---|---|---|---|
| 2025 | 70 | 14 | 21 |
| 2024 | 67 | 14 | 21 |
| 2023 | 65.5 | 14 | 22 |
| 7/1/2022 – 12/31/2022 | 62.5 | 14 | 22 |
| 1/1/2022 – 6/30/2022 | 58.5 | 14 | 18 |
| 2021 | 56 | 14 | 16 |
| 2020 | 57.5 | 14 | 17 |
| 2019 | 58 | 14 | 20 |
| 2018 (TCJA) | 54.5 | 14 | 18 |
| 2017 | 53.5 | 14 | 17 |
| 2016 | 54 | 14 | 19 |
| 2015 | 57.5 | 14 | 23 |
| 2014 | 56 | 14 | 23.5 |
| 2013 | 56.5 | 14 | 24 |
| 2012 | 55.5 | 14 | 23 |
| 7/1/2011 – 12/31/2011 | 55.5 | 14 | 23.5 |
| 1/1/2011 – 6/30/2011 | 51 | 14 | 19 |
Why the Rates Change
The IRS doesn’t pick these figures out of thin air. Each year (or mid-year, if something drastic changes in the economy or fuel costs), the IRS analyzes:
- Fuel Prices: Rising or falling gas costs directly impact how much it “should” cost to drive per mile.
- Maintenance & Repair Costs: How expensive is it to keep a car running in good condition (parts, labor, general upkeep)?
- Vehicle Depreciation: Cars lose value over time, and depreciation is one of the biggest factors in the IRS formula.
- Insurance & Registration Fees: Varying by state, these also contribute to overall vehicle operating costs.
When these factors shift significantly, the IRS may adjust the mileage rate even mid-year. That’s why it’s important to stay updated every year—and sometimes even halfway through—to ensure accuracy.
Historical Context for Recent Years (2022–2024)
- 2022: The IRS made a mid-year adjustment due to rising gas prices and inflation. From January 1 to June 30, the business rate was 58.5 cents. From July 1 to December 31, it rose to 62.5 cents.
- 2023: For the full year, the business mileage rate sits at 65.5 cents per mile, charity is 14 cents, and the medical/moving rate for qualified individuals is 22 cents.
- 2024: The IRS has set the business rate at 67 cents per mile, charity remains at 14 cents, and the medical/moving rate is 21 cents.
The IRS Standard Mileage Rate 2025
As of the official announcement, the IRS mileage rates for 2025 are:
- Business Use: 70 cents per mile
- Charity Use: 14 cents per mile
- Medical or Military Moving: 21 cents per mile
This marks a modest increase of 3 cents for business from the 2024 rate, reflecting updated data on fuel, maintenance, and other operating costs. For business owners, this means you’ll be able to deduct slightly more per mile in 2025.
Key Takeaway: The charity rate has stayed fixed at 14 cents per mile (as in previous years), and the medical or military moving rate has been set at 21 cents. These rates are effective for the entire 2025 calendar year starting January 1, 2025. If you drive frequently for business, staying current with these rates can significantly reduce your taxable income.
Business Mileage: Maximizing Deductions
Business owners who use a personal vehicle for professional tasks can see significant savings by tracking miles. In this section, we’ll examine how to maximize your deductions using the official 70 cents-per-mile rate in 2025, along with general best practices that apply every year.
Importance for Business Owners
Deductions for business mileage can reduce your taxable income significantly. Whether you run a small consultancy, drive for a gig economy platform, or operate a construction business, the miles you drive for work often add up quickly. Typical qualifying trips may include:
- Client Meetings: Traveling to a client’s office or a neutral meeting spot.
- Business Errands: Running to the bank or post office for your business, picking up supplies, or commuting between separate job sites.
- Conferences & Events: Driving to and from professional gatherings, trade shows, or educational seminars.
- Job Interviews (for the self-employed): If you’re scouting out new freelance or contract work, those miles might qualify, too (check with your CPA).
The 2025 IRS Mileage Rate for Businesses
With the rate for business use set at 70 cents per mile for 2025, here’s what you need to know:
- Official Announcement: On the IRS website, you’ll find the official statement confirming these rates.
- Effective Date: The 70-cent rate takes effect on January 1, 2025, and continues until December 31, 2025, unless a mid-year adjustment is announced (which is rare).
- Impact on Small Businesses: If you drive extensively for work, the extra few cents per mile can lead to meaningful tax savings, especially over thousands of miles.
Restrictions to Note
While claiming mileage deductions can be straightforward, there are some important restrictions:
- No Double Dipping: You cannot deduct the standard mileage rate and actual vehicle expenses (gas, repairs, maintenance, etc.) in the same year for the same vehicle.
- Personal Commute: Driving from home to your regular office is considered personal commuting, not deductible mileage (unless you have a qualified home office).
- Vehicle Ownership: To use the standard mileage rate, you generally need to own or lease the vehicle in question. If it’s owned by someone else (like your employer), different rules may apply.
- Documentation Is Key: The IRS wants you to keep precise records showing the business purpose of each trip, the mileage, and the date. We’ll discuss this more in the recordkeeping section below.
Documentation Needed
To stay compliant, your mileage records should include:
- Date of the Trip: You can use a digital calendar, a journal, or an app.
- Odometer Readings: Both the start and end readings for that trip.
- Business Purpose: Be specific, e.g., “meeting with Client X,” “picking up office supplies,” “attending marketing conference,” etc.
- Total Miles Driven: The difference between your start and end odometer readings.
Mileage for Charity Use
Volunteering your time and resources can come with tax benefits. Although the charity use rate is lower than the business rate, it’s still worth claiming if you frequently drive to support charitable endeavors.
Current Rates and How They Apply
Historically, the charitable mileage rate has remained at 14 cents per mile for many years. This figure is set by law, which means it does not adjust along with other mileage rates. The 2025 figure remains 14 cents per mile.
Examples of Qualifying Charitable Trips
- Delivering Meals: If you volunteer for a nonprofit that provides food to those in need, mileage to distribute these meals counts.
- Organizing Events: Trips to and from the charity’s venue to set up a fundraiser.
- Transportation for the Organization: Taking supplies or other volunteers to an official charitable event.
Recordkeeping Essentials
As with business mileage, the IRS wants details. Keep track of:
- Name of the Organization: Must be a qualified 501(c)(3) organization (or equivalent).
- Date of Service: Document which day(s) you drove.
- Purpose of the Trip: Outline the volunteer duties or activities.
- Total Miles: Record odometer readings or use a mileage-tracking app.
Medical or Military Moving Mileage
Medical and military moving expenses represent another category of mileage deductions. These can be critical for individuals facing health challenges or active-duty personnel who must relocate.
Definition and Eligibility
- Medical Mileage: If you need to travel for necessary medical care—doctor’s appointments, treatments, therapy, or other procedures—these miles can be deductible if you itemize your deductions on Schedule A.
- Military Moving Mileage: Active-duty Armed Forces members who move due to a permanent change of station can often deduct unreimbursed mileage for moving themselves and their families.
The 2025 Medical/Moving Rate
For 2025, the IRS has set the medical or military moving rate to 21 cents per mile. This is lower than the business rate but can still add up quickly, especially for frequent medical appointments or long-distance moves.
Tips for Compliance
- Keep Doctor/Hospital Receipts: If claiming medical mileage, pairing documentation of the procedure or appointment with your mileage log is key.
- Military Orders: If you claim moving mileage, maintain copies of your orders showing you had to relocate.
- Use an App or Calendar: Especially if you’re juggling multiple appointments, a dedicated app helps track every trip seamlessly.
- Consult Your CPA: Not all medical procedures qualify for deductions. A professional can help determine which visits are “medically necessary” and thus deductible.
Recordkeeping: Essential for Mileage Deductions
No matter which category you’re claiming—business, charity, or medical/military moving—recordkeeping underpins the validity of your deduction. In the event of an audit, the IRS will want to see precise logs. Poor or incomplete records often lead to disallowed deductions.
Why Good Records Matter
- Audit Protection: If the IRS ever examines your returns, they may ask you to provide evidence for every mile you claim. Proper logs give you that backup.
- Maximize Deductions: When you track mileage diligently, you’re less likely to miss out on legitimate deductions.
- Protect Against Penalties: Claiming mileage without documentation can lead to fines or penalties if the IRS disallows them.
Best Practices for Tracking Mileage
- Use a Dedicated Mileage Tracker App
- Many apps allow you to classify trips as business, personal, medical, or charitable.
- Automatic tracking means you won’t forget to record miles after every trip.
- Maintain a Spreadsheet
- If you prefer a hands-on approach, record the date, start and end odometer, total miles, and purpose of each trip.
- Update it daily or weekly to avoid errors.
- Keep a Paper Log in Your Car
- For those who don’t trust technology or want a backup, a small notebook works well.
- Note each trip’s purpose and odometer readings immediately.
Working With a CPA
A Certified Public Accountant is your partner in:
- Determining Eligibility: Are you sure all those miles qualify as business or charitable?
- Ensuring Correct Rates: A CPA stays updated on the 70-cent 2025 IRS mileage rate so you don’t have to guess.
- Optimizing Your Tax Position: Sometimes, the actual expense method might yield larger deductions if you drive a luxury or high-maintenance vehicle. Other times, standard mileage is simpler and more beneficial. Let a pro help you weigh the trade-offs.
Common Mistakes and Pitfalls
Missteps in calculating or documenting mileage can lead to missed deductions or even an unwanted letter from the IRS. Here are some frequent mistakes to watch out for.
Mixing Up Actual Expenses and Mileage
- One Method at a Time: If you claim the standard mileage rate, you cannot also deduct actual costs like gas, maintenance, or depreciation in the same tax year for the same vehicle.
- Switching Methods: If you start with the actual expense method, switching to the standard mileage rate in later years can be complicated. Consult a CPA for details.
Incorrect or Incomplete Logs
- Vague Descriptions: Writing “business trip” without detailing the exact purpose might raise flags in an audit.
- Rounding Miles Excessively: Continuously rounding up or approximating can look suspicious if your mileage appears too neat or inflated.
- Not Separating Personal and Business Use: It is common to drive the same vehicle for personal and business errands. Track them separately.
Failing to Stay Up-to-Date
- Using Old Rates: Applying a 2024 rate in 2025 can shortchange your deduction or inflate it incorrectly.
- Overlooking Mid-Year Changes: If the IRS ever does another mid-year change, you must split your calculations accordingly.
FAQs About the IRS Mileage Rate 2025
What is the IRS mileage rate for 2025?
The official IRS mileage rate for 2025 is 70 cents per mile for business use, 14 cents per mile for charity, and 21 cents per mile for medical or military moving. The IRS announced this on its website.
When does the 2025 IRS mileage rate become effective?
The new rate is effective January 1, 2025, and lasts until December 31, 2025, unless the IRS announces a mid-year adjustment (which rarely happens). Always check the official IRS Newsroom or consult a CPA for any updates.
Can I switch between standard mileage and the actual expense method mid-year?
No. For a given tax year, once you choose the standard mileage rate or the actual expense method for a specific vehicle, you generally stick with that method for the entire year. Switching mid-year isn’t allowed. You may, however, choose a different method in future tax years under IRS guidelines.
Why is the charity rate lower than the business rate?
The charitable rate—14 cents per mile—remains set by law and doesn’t adjust as frequently as the business rate. Legislative changes would be required to increase it significantly, which is why it typically remains static from year to year.
How do I track mileage for multiple cars?
If you use more than one vehicle for qualified business, charitable, or medical/moving purposes, keep separate logs for each vehicle. Each vehicle’s mileage needs distinct tracking: start and end odometer readings, purpose, and date.
Do I need a special app or will a paper log suffice?
Both are acceptable to the IRS if the log is accurate and complete. Digital apps can automate the process, reducing errors, but a paper log is equally valid if you keep it diligently. Choose whichever method you’re most likely to maintain consistently.
Can I deduct commuting miles from home to my office?
Generally, no. The miles driven between your home and primary workplace are considered personal commuting, not deductible. The rules may differ if you have a qualified home office, so check with a CPA.
Does the IRS offer any leniency if I forget to keep a mileage log?
The IRS expects a good-faith effort to maintain contemporaneous records. If you fail to keep proper records, your deductions could be disallowed or reduced. Reconstructed logs are sometimes permissible, but not as reliable as real-time records. Always keep logs up to date to avoid problems.
How does the Section 179 deduction relate to mileage deductions, and what about vehicles over 6,000 lbs?
The Section 179 deduction allows businesses to deduct the purchase price of qualifying vehicles and equipment used for business purposes in the year they are placed into service. However, if you take the Section 179 deduction for a car, you cannot use the standard mileage rate for that vehicle. This decision often becomes especially relevant for vehicles over 6,000 pounds gross vehicle weight rating (GVWR), which have unique tax benefits.
Here’s how Section 179 relates to vehicles over 6,000 lbs:
- Section 179 for Heavy Vehicles:
- Vehicles with a GVWR of over 6,000 lbs (such as SUVs, trucks, and vans) are eligible for higher Section 179 limits compared to standard passenger cars. For 2025, this could mean deducting up to 100% of the purchase price (under bonus depreciation rules) for qualifying vehicles used for business purposes.
- This is often called the “Hummer loophole” because it incentivizes purchasing larger vehicles for business.
- Eligibility Criteria for Section 179:
- The vehicle must be used at least 50% of the time for business purposes.
- You must place the car into service during the tax year you claim the deduction.
- Examples of vehicles that qualify include many trucks, large SUVs, and vans commonly used for construction, delivery, or other business purposes. Check the manufacturer’s GVWR to confirm eligibility.
- Standard Mileage vs. Section 179:
- If you choose the Section 179 deduction for a qualifying vehicle, you must use the actual expense method for all future tax years. This includes deducting fuel, insurance, maintenance, and depreciation costs.
- You cannot switch to the standard mileage rate after claiming Section 179 for that vehicle.
- When Section 179 Makes Sense:
- Section 179 is ideal if you purchase an expensive, heavy vehicle for business and want to take a significant upfront deduction.
- The standard mileage rate is simpler but may result in a lower deduction, especially for high-mileage or larger vehicles.
Pro Tip: Vehicles over 6,000 lbs offer significant tax-saving potential under Section 179, but choosing this deduction locks you into using actual expenses. A CPA can help you decide whether Section 179 or the standard mileage rate provides better long-term savings based on your business use and tax situation.
Conclusion
Whether you’re a solo entrepreneur clocking miles to meet clients, a volunteer delivering goods for your favorite nonprofit, or an individual driving for medical treatment, it pays—literally—to stay on top of the latest mileage rates. As the 2025 IRS mileage rate is now set at 70 cents for business, 14 cents for charity, and 21 cents for medical/military moving, you have a clearer path to maximizing these deductions.
Remember:
- Watch for Official Announcements: Although 2025 is set, the IRS sometimes issues mid-year changes.
- Good Records Are Everything: Keep detailed logs, supporting receipts, and any additional documentation.
- Consult a CPA: A professional can help ensure you’re claiming the correct amounts and staying compliant with IRS regulations.
Managing mileage might seem tedious, but it can lead to substantial tax savings over time. From small-business owners wanting to maximize profits to active-duty servicemembers needing to relocate, properly claimed mileage deductions can lower your taxable income. Keep thorough logs, stay informed about changes in the IRS mileage rates, and partner with a CPA for expert guidance.
Looking for expert guidance on tracking your miles or optimizing your overall tax strategy? Our CPA firm specializes in helping businesses and individuals make the most of deductions while staying compliant with IRS rules. Contact us today to schedule a consultation—we’ll handle the details so you can focus on growing your business or attending to what matters most.